2017 (1) TMI 750

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....s of law to be answered by this Court: "(01) Whether CEGAT has committed error of law by setting aside the order-in-appeal no. 55-56/CE/LKO/2001 dated 30.04.2001 wrongly applying the ratio of its earlier oder dt. 14.08.2000 which relates to reversal of the MODVAT credit of free sale of molasses used as input in the distillery unit of the party, whereas instance case relates to MODVAT credit wrongly taken on Levy Molasses used as input in the distillery unit of the party. (02) Whether the appellant Tribunal has committed error of law by not appreciating the fact that no MODVAT credit can be taken in respect of the levy molasses which is used as input for manufacture of country liquor and are under control of the State Excis....

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....615/6/2002-CX dt. 04.02.2002 and in the instant case credit of duty on Molasses which is used in manufacture of Country Liquor is not admissible to the party at all. (07) Whether the rule 57CC is applicable in respect of the levy molasses which is used by the manufacture exclusively in the manufacture of Country Liquor. Country Liquor is manufactured out of the quota of molasses allotted by the controlling authority of molasses i.e. Excise Commissioner (U.P.). Such quantity of molasses is being allotted to the distillery of the manufacturer which is known as levy molasses on the condition that the entire quantity of molasses shall be used exclusively in the manufacture of Country Liquor (Desi Sharab). Under the Rule 57-CC ....